Central Depository Services Limited (“CDSL” or the “Company”) is the leading securities depository in India. The company offers dematerialization service for a wide range of securities including equity shares, preference shares, mutual fund units, debt instruments, government securities. The Company has a market share of 58%.

CDSL maintains and services 5 Cr. Demat accounts of Investors or Beneficial Owners (BOs) spread across India. These BOs are serviced by CDSL’s 580+ Depository Participants (DPs) from over 20,500 locations.

Major shareholders of CDSL include BSE, Canara Bank, HDFC Bank, LIC and Standard Chartered Bank.

The Company has also set up CDSL Ventures Limited – the 1st and largest KYC Registration Agency (KRA) in the country with over 3 crore KYC records. The KRA enables a KYC compliant investor to avoid duplication of KYC process while opening an account for the purpose of trading / investment through multiple intermediaries in the securities market. CVL also provides eKYC and is registered as AUA/KUA with UIDAI.

CDSL Insurance Repository Limited for demat of insurance policies and CDSL Commodity Repository Limited for keeping electronic record of Electronic Negotiable Warehouse Receipts (eNWR).

On 26th November 2021, the Company announced that it is the first depository to hold Five crore plus (50 million plus) active demat accounts.

CDSL Income

Top 5 Shareholders

  • BSE Limited – 20%
  • Standard Chartered Bank – 7.18%
  • PPFAS Mutual Fund – 4.67%
  • Life Insurance Corporation Of India – 4.40%
  • HDFC Bank Ltd. – 3.28%

Financial Performance

Particulars FY17 FY18 FY19 FY20 FY21
Revenue (In Rs. Cr.) 146.00 191.02 196.25 225.11 343.72
Growth 30.84% 2.74% 14.71% 52.69%
EBITDA (In Rs. Cr.) 79.41 113.71 108.93 89.07 211.83
EBITDA Margin 54.39% 59.53% 55.51% 39.57% 61.63%
EBIT (In Rs. Cr.) 75.71 106.76 99.01 77.34 202.63
EBIT Margin 51.86% 55.89% 50.45% 34.36% 58.95%
PBT (In Rs. Cr.) 116.56 141.42 148.21 136.45 259.52
PAT (In Rs. Cr.) 85.78 103.18 113.51 106.16 200.34
PAT Margin 58.75% 54.02% 57.84% 47.16% 58.29%
EPS (In Rs.) 8.21 9.87 10.86 10.16 19.17
EPS Growth Rate 20.28% 10.01% -6.48% 88.72%
Historic P/E (Closing Price of 31st March) 31.87 28.63 22.33 20.40 34.20
CURRENT P/E 62.37
D/E 0.00 0.00 0.00 0.00 0.00
EV/Sales 24.63 12.03 11.63 24.35 45.83
Interest Coverage NA
ROCE 13.80% 17.37% 13.96% 10.10% 22.03%
ROE 16.08% 17.23% 16.99% 14.66% 22.84%

Quarterly Performance

Quarterly Results Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 TTM Q-o-Q % Y-o-Y %
Revenue (In Rs. Cr.) 89.20 86.13 103.09 117.28 145.97 452.47 24.46% 63.64%
EBITDA (In Rs. Cr.) 54.35 56.01 63.39 73.73 99.20 292.33 34.54% 82.52%
EBITDA Margin 60.93% 65.03% 61.49% 62.87% 67.96% 64.61%    
PAT (In Rs. Cr.) 48.75 53.69 51.74 63.87 85.92 255.22 34.52% 76.25%
PAT Margin 54.65% 62.34% 50.19% 54.46% 58.86% 56.41%    
EPS (Rs.) 4.67 5.14 4.95 6.11 8.22 24.42 34.53% 76.02%

Q2 FY 2022 Highlights:

  • CDSL became the first depository to register 4 Cr. demat accounts in July 2021.
  • 68 lakh demat accounts were opened in Q2FY22, highest ever quarterly addition, (Q2FY21 – 29 lakhs).
  • Number of Securities in Demat Custody (In crores) stood at 51,262.
  • Value of Securities in Demat Custody (In crores) increased to 35.21 lakh crore as on September 30, 2021.
  • In the period ended September 30, 2021, the Company through its subsidiary CVL continued to generate capital market investor records under CVL and being the first and largest KYC Registration Agency (KRA) in the country.

UNLISTED PEER – NSDL

National Securities Depository Limited (“NSDL” or the “Company”) is India’s first and largest securities depository. with an overwhelmingly high market share of 89% in terms of custody value of dematerialized securities in Indian capital markets. The business of the Company mainly consists of depository operations and allied services.

It has played a key role in transforming the Indian securities market by facilitating holding and settlement of securities in dematerialised form. NSDL demat accounts are located in more than 99% of pin codes in the country reflecting the wide reach of NSDL depository.  The Company has a market share of 42%.

As part of digital initiatives, NSDL has launched API / Technical Integration interface between the Participants and NSDL for opening NSDL Demat Accounts, Demat Gateway for providing to brokers mandate for delivery instructions and Margin pledge instruction for margin requirements.

Further, NSDL has launched an integration with Participants to facilitate their clients to access e-CAS and value-added services on IDeAS from the Net/Mobile banking and Participant/ Broking website. Adding to more automation, NSDL has also made available various value-added services for seamless NSDL DPM system operations i.e., NSDL STP Navigator, NSDL e-Signer & Auto Download for all its Participants.

Top 5 shareholders

  • NSE Limited – 24%
  • IDBI Bank – 26.10%
  • HDFC Bank – 4.67%
  • State Bank of India – 5.00%
  • SUUTI – 6.83%

Financial Performance

Particulars FY17 FY18 FY19 FY20 FY21
Revenue (In Rs. Cr.) 252.11 263.29 291.47 326.07 465.75
Growth 4.44% 10.70% 11.87% 42.84%
EBITDA (In Rs. Cr.) 102.80 109.81 112.84 122.86 205.91
EBITDA Margin 40.78% 41.70% 38.72% 37.68% 44.21%
EBIT (In Rs. Cr.) 99.33 105.91 105.90 121.76 205.04
EBIT Margin 39.40% 40.23% 36.34% 37.34% 44.02%
PBT (In Rs. Cr.) 142.43 152.45 147.37 162.21 246.58
PAT (In Rs. Cr.) 99.98 105.84 110.88 124.76 188.56
PAT Margin 39.66% 40.20% 38.04% 38.26% 40.49%
EPS (In Rs.) 25.00 26.46 27.72 31.19 47.14
EPS Growth Rate 5.84% 4.76% 12.52% 51.14%
CURRENT P/E (Price @ Rs. 2,000) 39.91
D/E 0.00 0.00 0.00 0.00 0.00
EV/Sales 0.00 0.00 0.00 0.00 16.35
ROCE 18.05% 16.63% 14.40% 14.38% 20.12%
ROE 25.89% 23.93% 20.04% 19.16% 24.19%

Quarterly Performance

Quarterly Results Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2021 TTM Q-o-Q % Y-o-Y %
Revenue (In Rs. Cr.) 86.04 124.88 155.90 84.73 101.12 466.63 19.34% 17.53%
EBITDA (In Rs. Cr.) 46.76 61.13 58.90 42.82 50.58 213.43 18.11% 8.17%
EBITDA Margin 54.35% 48.95% 37.78% 50.54% 50.02% 45.74%    
PAT (In Rs. Cr.) 49.84 56.85 49.58 40.65 53.35 200.44 31.23% 7.06%
PAT Margin 57.92% 45.52% 31.80% 47.98% 52.76% 42.95%    
EPS (Rs.) 12.46 14.21 12.40 10.16 13.34 50.11 31.30% 7.06%